By Ehrhardt H.B. No. 3349
77R7354 SGA-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to providing a means by which abandoned property can be
1-3 conveyed with clear title to be used for housing for low-income
1-4 individuals or families.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Sections 29.001, 29.002, and 29.003, Property
1-7 Code, are amended to read as follows:
1-8 Sec. 29.001. APPLICATION OF CHAPTER. This chapter applies
1-9 only to real property that is not exempt from forced sale under the
1-10 constitution or laws of this state and is:
1-11 (1) received by a person as a result of the death of
1-12 another person:
1-13 (A) by inheritance;
1-14 (B) under a will;
1-15 (C) by a joint tenancy with a right of
1-16 survivorship; or
1-17 (D) by any other survivorship agreement in which
1-18 the interest of the decedent passes to a surviving beneficiary
1-19 other than an agreement between spouses for community property with
1-20 a right of survivorship; or [and]
1-21 (2) received by a nonprofit organization that is
1-22 exempt from federal income tax under Section 501(a), Internal
1-23 Revenue Code of 1986, and its subsequent amendments, by being
1-24 listed as an exempt organization under Section 501(c)(3), Internal
2-1 Revenue Code of 1986, and its subsequent amendments, that:
2-2 (A) has been incorporated in this state for at
2-3 least one year;
2-4 (B) has a corporate purpose to develop
2-5 affordable housing that is stated in the articles of incorporation
2-6 or charter;
2-7 (C) has at least one-fourth of its board of
2-8 directors residing in the county in which the property is located;
2-9 and
2-10 (D) engages primarily in the building, repair,
2-11 rental, or sale of housing for low-income individuals or families
2-12 [not exempt from forced sale under the constitution or law of this
2-13 state].
2-14 Sec. 29.002. PETITION FOR FORCED SALE. (a) A person,
2-15 including a nonprofit organization, that [who] owns an undivided
2-16 interest in real property to which this chapter applies may file in
2-17 the district court in a county in which the property is located a
2-18 petition for a court order to require another owner of an undivided
2-19 interest in that property to sell the other owner's interest in the
2-20 property to the person if:
2-21 (1) the person has paid the other owner's share of ad
2-22 valorem taxes imposed on the property for any three years in a
2-23 five-year period or, in the case of a nonprofit organization, has
2-24 paid the other owner's share of ad valorem taxes imposed on the
2-25 property for any two years in a three-year period; and
2-26 (2) the other owner has not reimbursed the person for
2-27 more than half of the total amount paid by the person for the taxes
3-1 on the owner's behalf.
3-2 (b) The petition must contain:
3-3 (1) a description of the property;
3-4 (2) the name of each known owner of the property;
3-5 (3) the interest held by each known owner of the
3-6 property;
3-7 (4) the total amount paid by the petitioner for the
3-8 defendant's share of ad valorem taxes imposed on the property; and
3-9 (5) if applicable, the amount paid by the defendant to
3-10 the petitioner to reimburse the petitioner for paying the
3-11 defendant's share of ad valorem taxes imposed on the property.
3-12 Sec. 29.003. HEARING ON PETITION FOR FORCED SALE. At a
3-13 hearing on a petition filed under Section 29.002, the petitioner
3-14 must prove by clear and convincing evidence that:
3-15 (1) the petitioner has paid the defendant's share of
3-16 ad valorem taxes imposed on the property that is the subject of the
3-17 petition for any three years in a five-year period or, in the case
3-18 of a nonprofit organization, the petitioner has paid the
3-19 defendant's share of ad valorem taxes imposed on the property that
3-20 is the subject of the petition for any two years in a three-year
3-21 period;
3-22 (2) before the date on which the petition was filed
3-23 the petitioner made a demand that the defendant reimburse the
3-24 petitioner for the amount of the defendant's share of ad valorem
3-25 taxes imposed on the property paid by the petitioner; and
3-26 (3) the defendant has not reimbursed the petitioner
3-27 more than half of the amount of money the petitioner paid on the
4-1 defendant's behalf for the defendant's share of ad valorem taxes
4-2 imposed on the property.
4-3 SECTION 2. Chapter 29, Property Code, is amended by adding
4-4 Section 29.0035 to read as follows:
4-5 Sec. 29.0035. DEMAND TO UNKNOWN DEFENDANT. If the address or
4-6 identity of the defendant is unknown, the demand of the petitioner
4-7 for reimbursement from the defendant required by Section 29.003(2)
4-8 may be met by publication in a newspaper in the county in which the
4-9 property is located once each week for four consecutive weeks, with
4-10 the final publication occurring not later than the 30th day before
4-11 the date on which the petition is filed. The publication must
4-12 contain the demand for reimbursement and:
4-13 (1) a description of the property involved, including
4-14 the number of the lot and block or any other plat description that
4-15 may be of record if the land is situated in a municipality;
4-16 (2) the survey prepared to identify the property;
4-17 (3) the county in which the property is located;
4-18 (4) the interest of the defendant; and
4-19 (5) the name and address of the petitioner.
4-20 SECTION 3. This Act takes effect immediately if it receives
4-21 a vote of two-thirds of all the members elected to each house, as
4-22 provided by Section 39, Article III, Texas Constitution. If this
4-23 Act does not receive the vote necessary for immediate effect, this
4-24 Act takes effect September 1, 2001.